THE FED'S RATE DECREASE

The fed's latest rate decrease is not a decrease in mortgage rates! It's to provide cheap liquidity to banks. It has generated a run on stocks, but it will do litle to lower interest rates to new borrowers. Perhaps it will push them down a little temporarily but, historically, they'll go back up to something approximating where they are now. To those who got into homes with ARM loans during the past two to three years, their scheduled increases will be abated. So I guess it's good for those who have suffered through some sharp increases in their interest rates.

Mortgage loans are still historically cheap, though. 6% to 6 1/2% is an excellent interest rate. And Tyler Texas real estate is already off to another excellent year. Email me at http://www.johncmartin.com/